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ATC Telecom acquires tower business of Vodafone, Idea Cellular for Rs. 78.5 bn

ANI  |  Mumbai (Maharashtra) [India] 

Vodafone and Limited have separately agreed to sell their respective standalone tower businesses in to ATC Telecom Infrastructure Private Limited for an aggregate enterprise value of Rs. 78.5 billion.

The standalone tower businesses of Vodafone and Idea are pan-Indian passive telecommunication infrastructure businesses, comprising a combined portfolio of approximately 20,000 towers with a combined tenancy ratio of 1.65 times as at June 30, 2017.

Idea will sell its entire stake in ICISL and Vodafone will sell a business undertaking to ATC TIPL.

Both Vodafone and Idea as customers, and ATC TIPL as a mobile network infrastructure provider, have agreed to treat each other as long-term preferred partners, subject to existing arrangements. The parties will work together to further the expansion of high speed mobile networks in

After Vodafone and Idea completed their merger, 6,300 co-located tenancies of the two operators on the combined standalone tower businesses will collapse into single tenancies over a period of two years without the payment of exit penalties.

This transaction follows the Vodafone / Idea announcement of March 20, whereby the parties announced their intention to sell their individual standalone tower businesses to strengthen the balance sheet of the combined business.

In the event that the completion of the sale of the standalone tower businesses precedes the completion of the proposed of Vodafone and Idea, Vodafone will receive Rs 38.5 billion, while Idea will receive Rs 40.0 billion.

The receipt of these proceeds prior to completion was anticipated and provided for in the agreement and hence would not affect the agreed terms of the Vodafone and Idea merger, including the amount of debt which Vodafone will contribute to the combined company at completion.

On a related note, completion of the transaction is subject to customary closing conditions and receipt of necessary regulatory approvals, and is expected to take place during the first half of calendar year 2018.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, November 13 2017. 11:22 IST